The European Commission has proposed keeping the price cap on Russian oil at its current level until January, seeking to avoid a mandatory increase under the European Union’s review mechanism amid a rise in global oil prices following the war in the Middle East.

European Commission President Ursula von der Leyen announced the proposal while presenting the EU’s 21st sanctions package against Russia.

The price cap for Russian oil was set at $44.1 per barrel in January. Under the mechanism, the cap is recalculated every six months at a level 15% below the market price of Russia’s Urals crude.

Von der Leyen said the system “was not designed for market shocks of the kind caused by the closure of the Strait of Hormuz.”

“We propose freezing the adjustment until January next year. This will maintain pressure on Russia’s revenues while giving oil markets time to regain stability,” she said.

Brent crude has traded below $100 a barrel since the end of May. Prices fell to as low as $91 on Tuesday.

By contrast, according to Argus Media data, Urals crude has recently been shipped from Black Sea and Baltic Sea ports at an average price of around $73.5 per barrel.

Western companies seeking to comply with EU sanctions may purchase Russian oil only within the limits of the established price cap. However, most Russian oil is transported by shadow fleet tankers, many of which are themselves subject to sanctions.

As part of the 21st sanctions package, the European Commission has proposed imposing sanctions on an additional 30 vessels linked to that fleet.

The package also calls for a ban on the sale of ships that could be used to transport liquefied natural gas (LNG) to Russia, mirroring restrictions previously imposed on oil tankers.

In addition, the Commission plans to introduce sanctions targeting the fishing sector for the first time. It also said it had prepared what it described as the most comprehensive package of restrictions yet aimed at banks and financial companies, including those operating in third countries.

The proposed sanctions require the approval of all European Union member states before they can enter into force.

Digital ministers from the D9+ group, which represents some of the European Union’s most digitally advanced member states, are pushing for a unified approach to address growing concerns over children’s safety on social media.

In a joint declaration, 14 EU tech ministers led by Luxembourg called on the European Commission to adopt “a truly European approach to protecting children online” by coordinating the enforcement of EU rules governing child safety.

They also urged the bloc to develop “a common approach to the digital age of majority across the EU,” referring to a potential union-wide age limit for accessing social media platforms.

Last month, European Commission President Ursula von der Leyen indicated that the bloc could consider introducing legislation to this effect as early as this summer.

However, the declaration also highlights a dissenting voice. Estonia, which has emerged as a prominent critic of EU social media restrictions, raised objections to horizontal age restrictions at the EU level and stated that it does not support provisions aimed at enforcing age limits on digital platforms.

Estonia also opposed what it described as “disproportionate” age verification measures that would require all users to verify their age and identity.

In contrast, the remaining members of the D9+ group supported “privacy-preserving EU-wide age verification” in the declaration.

This position appears to reference the EU’s own age-verification technology intended for national implementation, which the Commission asserts is secure from a privacy perspective.

The member states also demanded that online platforms adapt their interfaces based on the age and vulnerability of their users.

This refers to ensuring platforms are safe by design and age-appropriate by default.

Furthermore, the ministers requested that the Digital Fairness Act (DFA)—a set of rules aimed at strengthening online consumer protection by tackling dark patterns and addictive designs, which the Commission plans to propose by the end of the year—be a “targeted” instrument within the context of the bloc’s broader regulatory simplification efforts.

The declaration also addresses other digital policy areas, with a particular emphasis on the EU’s technology sovereignty following the Commission’s adoption of a major microchip and cloud proposal last week.

The 14 digital ministers demanded that technology sovereignty be pursued “openly,” calling for measures to ensure that digital sovereignty does not become “solely an EU-specific vision.”

This phrasing implies that the D9+ countries would reject EU digital infrastructure support measures that could be accused of being protectionist by excluding foreign providers.

The Commission’s draft Cloud and AI Development Act allows foreign cloud providers the flexibility to obtain certification as EU partners at nearly the highest sovereignty levels.

The D9+ group includes the following countries: Austria, Belgium, Denmark, Estonia, Finland, Ireland, Luxembourg, the Netherlands, Poland, and Sweden.

Germany and France have abandoned their plans to jointly develop a next-generation fighter jet, following deep-seated industrial disputes that have derailed one of Europe’s most ambitious defense initiatives.

The collapse of the program represents a significant setback for French President Emmanuel Macron’s long-standing vision of strengthening European defense integration and strategic autonomy.

A German government official, speaking to POLITICO on condition of anonymity due to the sensitivity of the matter, stated: “President [Emmanuel] Macron and Federal Chancellor [Friedrich Merz] have reached a joint conclusion that the companies involved are unable to come together to produce a joint fighter aircraft. They accept this reality.” The official added: “For this reason, Chancellor Merz has advised President Macron not to pursue further work on the development of a joint combat aircraft.”

The project, known as the Future Combat Air System (FCAS), was launched in 2017 but had repeatedly stalled due to fierce disagreements between France’s Dassault Aviation and Germany’s Airbus Defence and Space over which entity would take the lead. Spain is also a partner in the FCAS program, which was intended to replace the German Eurofighter and the French Rafale fleets by approximately 2040.

Beyond the core fighter jet, the program encompasses a “system of systems,” including drones and a “combat cloud”—a digital backbone designed to integrate sensors, satellites, unmanned platforms, and manned aircraft into a single operational network.

Late Monday, the Elysee Palace issued a statement confirming that Airbus Defence and Space and Dassault Aviation had failed to reach an agreement. The French presidency implied that the decision to terminate the project was a unilateral German move, telling reporters: “German authorities concluded that it was no longer possible to exert further pressure on the companies in question. France maintains the view that Franco-German cooperation in defense and security remains vital for both our countries and our European partners.”

Despite the failure of the fighter jet component, the German official did not rule out continued cooperation between Paris and Berlin on drones and the combat cloud system. “The core of FCAS will continue as a European ‘system of systems.’ This is, in a sense, the nervous system that connects aircraft, drones, and other components into an integrated whole,” the official said.

The official further noted that the French and German defense ministries would be tasked with developing a work plan for industrial defense cooperation “focused on several realistic and relevant projects.”

The FCAS is not the only multilateral defense program facing significant hurdles. Joint Franco-German plans to develop maritime patrol aircraft, a next-generation tank (Main Ground Combat System), and new artillery systems have all faltered in recent years. Simultaneously, the Global Combat Air Programme (GCAP)—a rival fighter jet project led by the United Kingdom, Italy, and Japan—has also experienced internal friction.

France has effectively withdrawn from the multi-billion-euro, four-nation Eurodrone program. The future of that initiative remains uncertain as the remaining partners—Germany, Italy, and Spain—evaluate how to proceed.

The termination of the FCAS fighter jet component was not a sudden rupture but the culmination of a protracted and attritional struggle between Europe’s two most influential defense firms, Airbus and Dassault Aviation. As previously reported by POLITICO, German and French officials had been privately acknowledging for months that the fighter jet element of the project was effectively “dead.”

The deadlock intensified last summer when Dassault, the manufacturer of the Rafale, pushed to secure the undisputed lead in the construction of the FCAS fighter. Under that proposal, Airbus would have been relegated to the role of a subcontractor with limited oversight of the design, while Dassault would have retained the power to select suppliers, determine workshare, and act as the sole point of contact for customers.

Airbus rejected this approach as a fundamental violation of the original partnership agreement. The company argued it would transform a European cooperative program into a French-led project subsidized by German and Spanish funding and industrial expertise. By September, reports emerged that Berlin had begun exploring alternative options, including potential cooperation with Sweden or joining the rival GCAP program.

Beyond industrial control, Paris and Berlin remained divided over the technical specifications of the aircraft. France required a lighter jet capable of carrier-based operations, while Germany sought a heavier airframe optimized for air superiority missions. Berlin eventually proposed building two separate versions of the aircraft, a solution Paris rejected.

In March, Merz and Macron agreed to give the project a final opportunity to succeed, but subsequent negotiations failed to bridge the deep divisions. On Monday, the German Chancellery officially notified Airbus of the decision to cancel the project. According to La Tribune, Merz is expected to formally announce the decision on Wednesday during the opening of the ILA Berlin Air Show.